2025 may well be remembered as Year Zero for the Serbian telecommunications market – and with good reason. It marked the acquisition and effective split of Serbia Broadband (SBB), the second-largest player in Serbia’s cable and broadband market, by Telekom Srbija (TS) and Yettel (e&/PPF Telecom Group).
For the past decade, a fierce rivalry between TS, the state-owned telco giant, and SBB defined the Serbian TMT market. These two operators originated in different ways. TS was established as a spin-off from the Serbian Postal Services in 1997, inheriting a strong infrastructure and strength in fixed-line telephony. Over the years, it solidified its position as the market leader in mobile telecommunications.
SBB, on the other hand, started as a small cable operator in the early 2000s. Through strategic acquisitions and steady expansion into broadband, it rose to prominence, eventually becoming part of the United Group and reaching its peak in 2017 as the number-one cable TV provider.
The battleground between the two was primarily the cable TV and broadband segment, with rights to live sports TV broadcasts playing a crucial role in the competition. These rights were essential for a compelling cable TV offering, making them a key competitive asset.
Ultimately, the market rivalry ended with the symbolic “death” of SBB. United Group decided to divest its Western Balkans operations, including SBB. TS acquired SBB’s satellite business in an asset deal, along with the affiliated OTT platform targeting the Serbian and ex-Yugoslav diaspora. Simultaneously, TS also became the leading licensee of sports broadcasting rights in Serbia and the region. Meanwhile, Yettel bought SBB’s core business – cable TV and broadband services – marking a monumental leap for an operator focused only on mobile telephony for the past two decades.
What are the lessons learned from these developments? One key takeaway is that quad-play in Serbia matters. The bundling of fixed telephony, mobile telephony, cable TV, and broadband under one roof has proven crucial for success on the Serbian TMT market. However, one critical segment has remained somewhat under the radar – the licensing of sports TV broadcasting rights. In hindsight, this was the ace in the hole. The operator holding these rights effectively held the key to consumer attention – and revenue. While there is no doubt that TS’s historical advantage gave it an upper hand, SBB’s lack of a mobile telephony segment increasingly became a liability. But the decisive factor seems to have been the control over premium live sports content. Both TS and SBB seemed to understand well that mere cable distribution was not enough. They had to expand into what truly attracted consumers – premium licensed sports TV content. This marks a shift in the traditional “quad-play” concept toward what could now be called “quint-play.”
However, TS went further. By investing in original TV and movie production, it cemented its position as a key player in that segment across Serbia, the region, and with the global diaspora. The surge of original series and films was unprecedented in scope and scale. This evolution redefined the quint-play model as: fixed telephony + mobile telephony + cable TV + broadband + licensed and original media content. In many ways, this represents the pinnacle of TMT convergence – a fully integrated offering that addresses infrastructure, distribution, and content production all in one ecosystem.
Another question arises: why did other telcos – A1 and Yettel – not adopt this model? The probable explanation lies in ownership and strategic priorities. Both A1 and Yettel are part of large multinational companies, where Serbia, with a population of under 7 million, is only one among many markets, rarely a top strategic priority. By contrast, TS and SBB originated from Serbia, with regional expansion primarily into the neighboring ex-Yugoslav countries, mostly benefiting from minimal language barriers and shared cultural context. That said, United Group’s growing interests in Bulgaria and focus on its Greek operations shifted its focus away from Serbia, creating an opportunity for TS and Yettel.
So, is quint-play too much for the market and media? From a regional perspective, the answer appears to be no, at least for now. The fragmentation of the ex-Yugoslav markets, combined with limited interest from major international players, has left a gap in quality local content production. This gap has largely been filled by TS, which acted more quickly and decisively than SBB. TS’s move into content production has met consumer demand but arguably served a cultural function, offering fresh and relevant local entertainment.
By Miodrag Jevtic, Partner, Gecic Law
This article was originally published in Issue 12.7 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
